View
409
Download
2
Category
Tags:
Preview:
Citation preview
Copyright © 2001-2007 Infor Global SolutionsInfor Confidential
Bruce Gheesling – Sr. V.P GAS March 20, 2007
David Berger; Contributing Editor, Plant Services magazine – WMCRod Ellsworth; Vice President Global Asset Sustainability – Infor
Six Key Metrics to Align Asset Management & Energy Efficiency
2 Copyright © 2001-2007 Infor Global Solutions
Western Management Consultants
General management consulting, including asset management
Five offices across Canada www.wmc.ca David Berger
Contributing Editor, Plant Services magazine 15+ years industry experience, incl. executive roles Founding President of PEMAC
3 Copyright © 2001-2007 Infor Global Solutions
Capture the Right Metrics: Benefits
Define success for your asset performance management Move to a more planned environment Improve control of assets Lower operating costs and increase revenue opportunities Measure to motivate
4 Copyright © 2001-2007 Infor Global Solutions
Challenges in Working with Metrics
Too few or incorrect metrics that don’t trade off Improvement in one may result in deterioration of another
Too many measurements No focus across the organization Expensive to collect and track Increased likelihood of errors
Risks of not using the right metrics Major safety, environmental or operational failures Reduced efficiency resulting in financial loss Total plant shutdown
5 Copyright © 2001-2007 Infor Global Solutions
Poll – Question
OEE question to viewers
6 Copyright © 2001-2007 Infor Global Solutions
What are the 6 Key Metrics?
Maximize 5: Availability (vs machine downtime) Utilization (vs available but not used) Reliability (eg. MTBF, MTTR) Performance (ie, efficiency) Quality of output
Minimize 1: Total Cost of Ownership (ie, lifecycle cost)
7 Copyright © 2001-2007 Infor Global Solutions
OEE is Insufficient
OEE is “Overall Equipment Effectiveness”
OEE = Actual Output from an Asset / Theoretical Maximum Output from that Asset
OEE = Availability x Performance x Quality
The problem with OEE: Does not explicitly capture all of the tradeoffs
(eg, reliability, utilization, and total cost of ownership)
May miss the largest cost drivers(eg, energy efficiency, emissions, throwing people at a problem)
Formula complicated and not easily understood – better to track the individual metrics
Obscures the root cause
8 Copyright © 2001-2007 Infor Global Solutions
The Bigger Picture
MRO spending: US companies spend $100 Billion annually on capital equipment and services
Energy spending: US companies spend $400 Billion annually on energy – and climbing
Next to personnel, the single highest cost for a typical manufacturing facility is energy
So why do companies maximize asset availability / performance / quality (ie, OEE) without properly understanding the two biggest cost drivers?
Would you take on the cost of a high performance limousine, that is always available, and gives you a quality ride from A to B, if it has a high purchase price, guzzles gas, requires a team of people to maintain, has a poor economic life, and is scoffed by passersby?
OEE does not tell the whole story
9 Copyright © 2001-2007 Infor Global Solutions
Energy Prices are Rising
From a survey conducted last fall by Plant Services magazine, it is clear that business leaders are concerned about rising energy prices – 77.3% felt energy prices would have the highest impact
What current trends do you think will have the most impact on operations in U.S. manufacturing plants? (check all that apply)
020406080
100120140
Environm
entalregulations
Autom
ation
Advancedprocess
Global
competition
ISO
_____
Energy prices
Raw
material/capital
Improved
productivity
Safety andsecurity
Worker safety
Global
economy
R&
D
Outsourcing
Dow
nsizing
Loss ofinstitutional
Other
10 Copyright © 2001-2007 Infor Global Solutions
Key Asset Performance Analysis Tools
A. Criticality Analysis – Looking Forward based on Engineering Design
B. Failure History Analysis – Looking Forward Based on History
C. Predictive Maintenance Analysis – Looking Forward Based on History/Eng/Stats
D. Lifecycle Analysis – Repair/Replace Decision Based on Cost History
11 Copyright © 2001-2007 Infor Global Solutions
A. Criticality AnalysisLooking Forward based on Engineering Design
1. What does this component do?
2. What happens if it fails?• Catastrophic• Major safety, environmental or operational impact (eg total shutdown)
• Reduced efficiency• Other financial loss (eg. quality problems)• Negligible impact (therefore run to failure)
3. What maintenance program is required for this component (cost/benefit analysis)?• Reactive (run to failure)• Preventive (time-based inspection)• Predictive (condition-based monitoring – what are the predictors?)
Examples: replace the light bulb; change the oil; replace the bearings
reactive preventive predictive
12 Copyright © 2001-2007 Infor Global Solutions
B. Failure History AnalysisLooking Forward Based on History
Considering asset sustainability (eg, energy costs, environment), is a new approach to EAM.
Coded Description Frequency TotalField (%) Cost ($)
Cause Faulty bulb 45 15,000Loose bulb connection 20 40,000Loose wire 15 10,000Broken ballast 10 15,000Surge at power source 5 2,000Intermittent ground fault 5 1,000
83,000
Coded Description Frequency TotalField (%) Cost ($)
Problem Light out 35 22,000Humming noise 30 95,000Light flickers 20 83,000Light incorrect colour 10 20,000Weak light 5 5,000
225,000
Coded Description Frequency TotalField (%) Cost ($)
Action taken Replace bulb 35 11,000Tighten bulb connection 30 9,000Repair socket 20 15,000Replace socket 10 3,000Repair bulb 5 2,000
40,000
Most companies are stuck in an old OEE paradigm.
What does your EAM system provide?
What are the cost drivers?
13 Copyright © 2001-2007 Infor Global Solutions
C. Predictive Maintenance AnalysisLooking Forward Based on History/Eng/Stats
Identify high cost failures: (eg, engine failure)
Examine history of failure and determine correlated conditions prior to failure: (eg, temperature, energy usage, or excessive emissions prior to engine failure)
Track trends in condition of predictor: (eg, spikes in energy usage and trends to upper control limit)
Take appropriate action depending on severity: (eg, activate an alarm, send an email, and/or launch a PM routine to inspect)
Improve equipment performance and reliability using root cause analysis: (e.g., monitoring energy consumption increases MTBF)
14 Copyright © 2001-2007 Infor Global Solutions
D. Lifecycle AnalysisRepair/Replace Decision Based on Cost History
Determine problem codes that resulted in high repair/replace costs charged to a given asset: (eg, spent average of $10,000 on replacing type 1 motors)
Examine historical data to determine root cause:(eg, spikes from power source vs faulty motor)
Perform cost/benefit analysis for repair/replace decisions: (eg, $200 to filter spikes vs $10,000 to replace motor)
Replace asset/component if total cost of repair exceedsreplacement cost, assuming alleviation of root cause: (eg, if spikes, don’t replace motors; if faulty motor, it may be cost-effective to replace with alternative motor)
Repeat for predictive based on engineering probabilities: (eg, high probability that motor will fail within the year based on energy consumption)
15 Copyright © 2001-2007 Infor Global Solutions
Case Study
Large asset-intensive company in energy sector More than 1000 assets Multiple CMMS/EAM packages looking to consolidate No clear maintenance strategy Poor history records
Solution:
Chose key assets/components for pilot Tracked history via CMMS/EAM Used analysis tools to determine optimal maintenance policy
(reactive/preventive/predictive) Results: Significant savings (+20% savings)
Copyright © 2001-2007 Infor Global SolutionsInfor Confidential
Bruce Gheesling – Sr. V.P GAS March 20, 2007
Rod EllsworthVice President Global Asset Sustainability – Infor
Six Key Metrics to Align Asset Management & Energy Efficiency
17 Copyright © 2001-2007 Infor Global Solutions
Poll – Question
Energy Efficiency question
18 Copyright © 2001-2007 Infor Global Solutions
Asset Performance
Capacity, Availability, Quality
Financial Performance
< 30% of O&M Expense
Based on industry standards
EAM Enablement
Yesterday
The management of property, plant, and equipment to meet
a company’s valid operations and financial
requirements
EAM Evolution – “The Paradigm Shift”Global Asset Sustainability
Asset Performance Capacity, Availability, Quality
Financial Performance > 80% of O&M Expense
Environmental Performance GHG & Fugitive Emissions
GAS Enablement
Today
Enriched Infor Solution
Enriched Infor Solution
Infor SolutionInfor Solution
The management of property, plant, and equipment to meet
the operations, economic, and socio-economic needs of
today without compromising the ability of future generations to meet their own such needs.
Rod Ellsworth;Vice President, Infor Global Solutions; 2007
The management of property, plant, and equipment to meet
the operations, economic, and socio-economic needs of
today without compromising the ability of future generations to meet their own such needs.
Rod Ellsworth;Vice President, Infor Global Solutions; 2007
19 Copyright © 2001-2007 Infor Global Solutions
Current SituationNeed for Automated Continuous Commissioning
Equipment is not properly commissioned, operated nor maintained even though capabilities of PLC and BAS continue to increase and maintenance programs are in place
Improper operations lead to inefficiencies and reduced lifetime of the equipment
Commissioning and retro-commissioning fixes do not persists over time
Manual periodic commissioning can be expensive Field demonstrations of diagnostic tools indicate
Many assets are improperly operating, including those that are newly commissioned
Even when problems are identified, operators rarely take corrective actions
20 Copyright © 2001-2007 Infor Global Solutions
So, Just What is Continuous Commissioning?Continuous Commissioning Process
Preliminary Data Collection(e.g. equipment nameplate
information, set points, energy efficiency, operations limits)
Preliminary Data Collection(e.g. equipment nameplate
information, set points, energy efficiency, operations limits)
Continuously monitor and run equivalent functional asset tests
Continuously monitor and run equivalent functional asset tests
Continuously record, analyze and interpret observations and
functional test results
Continuously record, analyze and interpret observations and
functional test results
Manually correct problems, change installation, replace, repair
Manually correct problems, change installation, replace, repair
Report results. Store and archive data
Report results. Store and archive data
Commission fixes
Commission fixes
Continuous Commissioning
• ongoing process for monitoring systems and assets, diagnosing and resolving issues, and making energy consumption as efficient as possible while maintaining or improving asset performance.• includes all asset life-cycle operating and maintenance aspects from physical maintenance, to control strategies, to prioritizing and implementing retrofits.
optimize current operations
Cost Benefits
20 % + energy reduction formonitored assets
DOE Continuous Commissioning Guide BookIndependent Study by Texas A&M
21 Copyright © 2001-2007 Infor Global Solutions
Integrating Sustainability into Asset Management Operations – 3 Steps
Step1: Quantify Energy Intensity & CO2 Footprint Direct Indirect
Asset performance : energy : generation : CO2
Step 2: Assess Company Risk Business Implications
Cost Regulatory Compliance Competitiveness
Step 3: Adapt in Response to Risk Maintain and Change Capital Infrastructure
< Energy Intensity & CO2 GAS Programs
It is envisioned that this is a continuous improvement process to ensure long term sustainability.
It is envisioned that this is a continuous improvement process to ensure long term sustainability.
22 Copyright © 2001-2007 Infor Global Solutions
… to improve a company’s overall equipment operating performance at the least cost and environmental impact. Energy is the single largest indirect operating expense; > 80% of O&M expense Energy is the largest contributor of CO2 Gases which comprise 63% of all GHG
… to improve a company’s overall equipment operating performance at the least cost and environmental impact. Energy is the single largest indirect operating expense; > 80% of O&M expense Energy is the largest contributor of CO2 Gases which comprise 63% of all GHG
Energy integration into EAM strategy…
Maintenance Program Management: factoring asset operating performance (Energy consumption) into maintenance strategy and activities
Alert Management: alerting of existing asset condition or trend outside of optimum operating parameters for assessment or remediation
Planning: assessing existing asset configuration (design basis) and performance (energy consumption) for optimization
Asset Sustainability Spend$208 Billiion N.A. Market
87%
13%
C&I Energy Spend
C&I Maintenance Spend
Improve OEE …at the least cost and environmental impact
Asset Sustainability Spend ($208B N.A. C&I Market)
4,475B kWh N.A. Energy Market 16,599B kWh World-wide Energy Market
23 Copyright © 2001-2007 Infor Global Solutions
Solving the ProblemInfor EAM Asset Sustainability; Continuous Commissioning Process
Preliminary Data Collection(e.g. equipment nameplate
information, set points, energy efficiency, operations limits)
Preliminary Data Collection(e.g. equipment nameplate
information, set points, energy efficiency, operations limits)
Continuously monitor and run equivalent functional asset tests
Continuously monitor and run equivalent functional asset tests
Continuously record, analyze and interpret observations and functional test results
Continuously record, analyze and interpret observations and functional test results
Manually correct problems, change installation, replace, repair
Manually correct problems, change installation, replace, repair
Report results. store and archive dataReport results. store and archive data
Infor Asset Sustainability is an enterprise repository
for all asset data
Infor Asset Sustainability is an enterprise repository
for all asset data
Infor Asset Sustainability alert management provides
continuous AFDD monitoring & testing
Infor Asset Sustainability alert management provides
continuous AFDD monitoring & testing
Infor Asset Sustainability alert management records,
interprets, and tests real time BAS and metering
observations
Infor Asset Sustainability alert management records,
interprets, and tests real time BAS and metering
observations
Infor Asset Sustainability automatically generates work
orders to rectify anomalies and validate fixes
Infor Asset Sustainability automatically generates work
orders to rectify anomalies and validate fixes
Infor Asset Sustainability quantifies results, and stores data for anomaly determinant
Infor Asset Sustainability quantifies results, and stores data for anomaly determinant
Commission fixesCommission fixes
24 Copyright © 2001-2007 Infor Global Solutions
Environmental Sustainability:Intuitive Actionable Information
The G.A.S. index reduces complex manufacturing and facility operating problems of optimizing asset design performance at the least total energy cost and environmental risk into simple, intuitive presentation of actionable information.
G.A.S. Index = Availability * Performance * Quality * Energy Efficiency
The G.A.S. index reduces complex manufacturing and facility operating problems of optimizing asset design performance at the least total energy cost and environmental risk into simple, intuitive presentation of actionable information.
G.A.S. Index = Availability * Performance * Quality * Energy Efficiency
25 Copyright © 2001-2007 Infor Global Solutions
Environmental Sustainability:Operating Performance vs. Energy Cost
Infor EAM Asset Sustainability Edition
Asset performance management can reduce energy consumption by 6% to 20% These percentages have been established by international studies which indicate that a company’s asset management operations would benefit from integrating energy consumption into their asset management strategy.
Terry Wireman; Benchmarking Best Practices in Maintenance Management ISBN: 0-8311-3168-3
Asset performance management can reduce energy consumption by 6% to 20% These percentages have been established by international studies which indicate that a company’s asset management operations would benefit from integrating energy consumption into their asset management strategy.
Terry Wireman; Benchmarking Best Practices in Maintenance Management ISBN: 0-8311-3168-3
Infor EAM Asset Sustainability Edition
26 Copyright © 2001-2007 Infor Global Solutions
Comprehensive GHG emissions management. Direct and indirect CO2 determination by fuel type or fuel mix of provider. Performance benchmarking
Comprehensive GHG emissions management. Direct and indirect CO2 determination by fuel type or fuel mix of provider. Performance benchmarking
Environmental Sustainability:
Environmental Impact
Infor EAM Asset Sustainability Edition
27 Copyright © 2001-2007 Infor Global Solutions
In conclusion, do you know…
If your asset operations performance consume more energy than it was designed to consume?
If some assets are consuming more energy than a like or comparable asset in
your enterprise?
If there are more energy efficient products and if they could impact your operation and financial performance?
How energy consumption impacts your asset repair vs. replace analysis?
How your operations energy efficiency compares to industry benchmarks and guidelines ?
28 Copyright © 2001-2007 Infor Global Solutions
Next Step?
Thank you for attending today’s Webinar on
“Six Key Metrics to Align Asset Management & Energy Efficiency.”
Contact Infor? Call Infor at 1-800-260-2640 Email Infor at solutions@infor.com
Next step? Take the Green Assessment: go.infor.com/green Demo & report:http://www.infor.com/goinggreen/solutions/greeneam/as/ Attend the next live demo of Infor EAM Asset Sustainability Edition on
June 26: http://www.infor.com/company/events/
Recommended